Property and Equipment

12 Months Ended

Dec. 31, 2017

Note 3. Property and Equipment

Property and equipment at December 31, 2017 and 2016 consists of the following (amounts in thousands):

	2017			2016
Land and improvements	$	8,724		$	8,724
Building		11,258			11,579
Equipment		27,930			27,953
Towers		1,450			5,484

		49,362			53,740
Less: accumulated depreciation		(26,220	)		(29,115	)

		23,142			24,625
Equipment installations in progress		1,291			876

	$	24,433		$	25,501

Depreciation expense was $2.9 million, $3.2 million and $3.7 million for the years ended December 31, 2017, 2016 and 2015, respectively.

On September 20, 2017, Hurricane Maria made landfall in Puerto Rico, causing damage to WAPA's infrastructure. WAPA suffered limited damage to its studios and headquarters and to two of its three broadcast transmission towers, but the third transmission tower was completely destroyed. Accordingly, we have recorded a $0.5 million fixed asset impairment charge related to the net book value of the identified damaged assets. A significant portion of the damaged assets have been in service for more than 10 years and, as such, are largely fully depreciated. We anticipate the replacement cost will be well in excess of the net book value, though we expect insurance will cover most of the replacement costs, subject to deductibles and other costs. In 2017, we received and recognized $3.3 million in insurance recoveries related to these assets. There can be no assurances of the timing and amount of proceeds we may recover under our insurance policies.